Defendant Name: Franklin Advisers, Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: Franklin Resources Inc.
SIC Code: 6282
CUSIP: 35461310

Document Reference: 34-50841A

Document Details

Legal Case Name In the Matter of Franklin Advisers, Inc. and Franklin/Templeton Distributors, Inc.
Document Name Corrected Order Instituting Administrative and Cease-and-Desist Proceedings, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Sections 9(b) and 9(f) of the Investment Company Act of 1940, and Section 15(b) of the Securities Exchange Act of 1934
Document Date 13-Dec-2004
Document Format Administrative Proceeding
File Number 3-11769
Allegation Type Broker Dealer
Document Summary The Commission stated: "Between 2001 and 2003, Franklin Templeton Investments (“Franklin” or “FT”), a global mutual fund complex, entered into inadequately disclosed agreements with 39 broker-dealer firms. . . . By engaging in the inadequately disclosed practice of using fund assets for shelf space, FA and FTDI violated the securities laws. FA and FTDI also violated the law by not ensuring that the commission payments for shelf space were assets of the specific fund promoted by the broker-dealer."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Censured
Other Compliance Related Undertaking
Independent Distribution Consultant Undertaking
Remedial Acts or Efforts Before the Resolution
Monetary Penalties:

Disgorgement

Individual:     Shared:     $1.00
Shared with: Franklin/Templeton Distributors, Inc.

Civil Penalty

Individual:     $10,000,000.00 Shared:    

Related Documents:

34-51341 09-Mar-2005 Administrative Proceeding
Certain Disgorgement and Fair Funds in Administrative Proceedings (Order Directing Appointment of Tax Administrator)
The Commission stated: "The Commission's orders in the administrative proceedings on the attached list created Distribution and Fair Funds (the "Funds")."
34-53844-pdp 19-May-2006 Administrative Proceeding
Proposed Plan of Distribution of the Independent Distribution Consultant with Respect to Admin. Proc. File No. 3-11769
The Commission stated: "This Proposed Plan of Distribution ("Plan") has been developed pursuant to the Corrected Order of the Securities and Exchange Commission ("Commission") Instituting Administrative and Cease-and-Desist Proceedings, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order against Franklin Advisers, Inc. ("FA") and Franklin/Templeton Distributors, Inc. ("FTDI") (collectively, "Respondents"), dated December 13, 2004 ("Consent Order")."
34-53844 19-May-2006 Administrative Proceeding
Notice of Proposed Plan for Distribution of a Fair Fund and Opportunity for Comment
Notice is hereby given, pursuant to Rule 1103 of the Securities and Exchange Commission's ('Commission') Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1103, that the Division of Enforcement has submitted to the Commission a proposed plan ('Distribution Plan') for the distribution of monies placed into a Fair Fund in the above-captioned matter.
34-54037 23-Jun-2006 Administrative Proceeding
Order Approving Distribution Plan and Appointing an Administrator
Accordingly, pursuant to Rule 1104 of the Commission's Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1104, it is hereby ordered that the Distribution Plan is approved. It is further ordered, pursuant to Rule 1105 of the Commission's Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1105, that Marc J. Fagel Esq. of the Commission staff is appointed as the Administrator of the Distribution Plan in accordance with the terms of the Distribution Plan.
34-54342 21-Aug-2006 Administrative Proceeding
Order Directing Distribution of Fair Fund
Accordingly, it is ordered that the Plan Administrator shall distribute the Fair Fund to the FT Funds as described in the Plan of Distribution.
34-58106 07-Jul-2008 Administrative Proceeding
ORDER APPROVING FINAL ACCOUNTING, DIRECTING PAYMENT OF REMAINDER OF FAIR FUND TO UNITED STATES TREASURY, AND DISCHARGING ADMINISTRATOR
The court stated "On May 19, 2006, the Commission published a notice of the Plan of Distribution proposed by the Division of Enforcement in connection with this proceeding (Securities Exchange Act Release No. 53844)." The Court also stated "Between December 9, 2004 and December 18, 2006, income tax payments totaling $467,580 were made from the Fair Fund. Pursuant to the Plan Administrator's final accounting, submitted pursuant to Rule 1105(f) of the Commission's Rules on Fair Fund and Disgorgement Plans, $166,093.65 remains in the Fair Fund."

Other Defendants in Action:

Franklin/ Templeton Distributors, Inc.